Top individual investors seem to be in agreement that trading individual stocks is more productive than investing money in funds. Of course, funds have advantages since they reduce the amount of work that you need to do and instead pawn that off on others, but for the most part, the fees that funds take out cut into profits too much, and an educated market expert can usually outperform a fund manager. Finish reading How Small Traders Can Trade Effectively
New data out of the U.S. economy has investors smiling, but it is also setting the stage for a Fed rate hike later on in the year. Jobs keep growing within the U.S., and this is a very good thing for the economy. It shows normal growth, according to some economists, and that is a sign that the Fed can once again safely raise interest rates, and start creating more revenue for the federal government on this front.
This is a normal cycle within a healthy economy, but it does imply that there will be slow down in stock market growth once rates do go up. This, again, is normal, but it will become a bit more expensive for businesses to borrow money and grow, and this means that the record growth that the 2014 year so will probably not happen again in 2015. It doesn’t mean that growth will not happen, it just means that it might not be as dramatic in nature.
There is no need to worry about this. Growth of any sort is good for long term investors, and it can be even better for traders, too. Finish reading Rate Hike Possible Later this Year
The historical trend says that the markets will keep going up. However, that doesn’t mean that it’s necessarily so indefinitely into the future. Despite what most experts believe, there’s no reason to expect that this absolutely must happen. The Baby Boomer generation, those born in the 20 or so years after World War II, were part of a worldwide shift in wealth and way of thinking. A lot happened during their lifetimes: the U.S. went off the gold standard, inflation skyrocketed, and growth became an expectation–not a once in a while thing. To be sure, the post-Depression world has seen an average growth of 3 percent per year in the U.S.’s major indices. Before the Depression, the rate was lower.
This has created the illusion that investing is the best possible thing you can do with your money. It is expected that if you put your money into the market, 25 or 30 years from now, it will be a lot more money. It’s expected that the money will grow considerably, especially if you keep adding more to it so that you can keep seeing more and more compound interest. It’s a great idea, but it isn’t necessarily a tried and tested truth. Investing is a good idea, but it isn’t the end all be all when it comes to managing your personal wealth.
The truth is, earnings per individual are starting to slow down in their growth. Finish reading Preparing for a Slowdown
Most people have two main issues when it comes to increasing their net worth. The first has to do with debt. Whether it be credit cards, loans, or financing for expensive items, debt often carries a higher interest rate than a lot of investments, thus giving lenders a long term advantage. The other issue has to do with earning potential. Most people feel like they are underpaid for what they do and their education levels. And most of these people don’t do much to try and solve these issues.
One way to give yourself an edge in increasing your earnings and reducing debt is by trading. However, many people avoid financial markets completely, even long term retirement savings. This can be an easy frame of mind to be in because they can’t afford risk, and yes, there is some risk involved. But there doesn’t need to be a lot of risk if you approach it right, and binary options allow you to increase safety. Finish reading Using Binary Options as a Personal Finance Tool
It’s been a bumpy ride for stocks the last couple weeks. One day the Dow Jones will be up 200 points, the next day it will be down the same. Triple digit motion is not uncommon in the Dow, but it’s also doesn’t happen every week, either. Motion is good a lot of the time since it means faster profits if you are positioned correctly, but this type of momentum has been uncertain a lot of the time, which means getting the right position is extremely difficult.
The good news is that ultra short term trading puts you in a place where you don’t have to guess at the beginning of the day and hope for the best like a lot of day traders are finding is happening now. Instead of having to worry about holding in for long enough to make a profit, with something like a 60 second or five minute binary option, you just have to worry about predicting whether or not a prevailing trend will keep up with its dominance. In times like what has been going on the last couple weeks, this is actually much easier than it usually is. Finish reading Small and Steady During Times of Unpredictability
While the stock market is going down steadily, a big portion of the economy is being ignored by traders. If you are not comfortable with downward trading, such as short sales and put binary options, going long is your only choice. And luckily, there are assets that are still going up, even if stocks and indices are being driven down into the ground.
If you look at a chart for the euro as compared to the U.S. dollar, you will see that over the past three months, the euro has been steadily going down in price. Over the last several days, it has been a little less steady than normal for the recent few months, but the momentum is still overall downward for the euro, which means that the dollar is going up in value. Other currency pairs are seeing the same thing happen. The dollar is getting stronger all across the board. This is true even against the Japanese yen, the Canadian dollar, and the Swiss franc.
This is actually a common thing within the U.S. economy. Finish reading What to Trade While Stocks Drop
The new iPhone 6 was recently released by Apple, and sales are extremely high right now. Apple has been a monumental tech company over the last ten years, and it seems that every product they put out has been met with huge hype. And when a product is released, their stock price generally increases. But, the last few days have been a bit different. Share prices haven’t gone up that much, even though the immediate sales of the iPhone 6 are up to 10 million already–a whole million better than their previous record. The big question tech stock watchers have is: why hasn’t the stock price changed much?
There are a few reasons why this could have happened, but the biggest answer is probably that investors expected this to happen and acted appropriately ahead of time. The dollar and change that the shares of Apple went up by recently were enough to give the stock an increased price change for the last five days, but not enough to signify that investors are excited about the prospects and performance of this new product. Finish reading The iPhone 6 is Here
The big buzz on Wall Street right now is that many U.S. based companies are trying to relocate to other countries. President Obama spoke about this several weeks ago, and now, it looks like some big names are beginning to take action. The major news Monday was that Burger King is buying Tim Horton’s–and part of the deal is that Burger King will be moving its headquarters to Canada in order to avoid many U.S. taxation policies.
It’s not a surprise by any means, but it is one of the first moves made by a major U.S. corporation. And the surprising part of this is that this news made investors extremely happy. Shares of Burger King jumped by almost 20 percent by the end of the trading day. Tim Horton’s stock went up by just over 18 percent, too.
This strategy is known as tax inversion, and it has been a huge trend this year alone. It’s basically when a company relocates its home office to a country with lower taxes, all while retaining business within the original country. In other words, Burger King will still be around in the U.S., it just won’t have to pay as much to the government in order to do what they’ve always done. In the end, it avoids a lot of the double taxation that many American corporations are stuck with. Finish reading The Whopper is Moving
Using binary options is not for everyone, but it does provide an ease of entry to the marketplace that you will not find anywhere else. Yes, you can buy stocks for very cheap through automatic investing with some stockbrokers, but this is not an effective short term strategy. Binaries are the only type of trading where you can make worthwhile profits with small amounts of cash and little risk. They are more effective and cheaper to process than anything else you can find, and this is one of the biggest reasons why they are growing so rapidly in popularity.
First, consider the stock market. Many brokers allow you to buy stocks for as little as $4 in some cases. If you bought 10 shares of a $25 stock, you would spend $254 to do this. Now, let’s say the stock goes up $5 per share in a week. You sell your shares for $15 and have $285 credited to your account. The stock went up 20 percent, but you only made a $31 profit off of it after broker fees instead of the $50 that you thought you had. Finish reading Binary Options Provide Ease of Trading